Myanmar ATMs to accept Visa cards

Reading Time: 2minutesMyanmar ATMs will release cash on Visa cards by January

The world’s largest credit card company, Visa Inc, has signed agreements with three private banks in Myanmar – Kanbawza, CB and Myanmar Oriental – to enable Visa-branded cards to be accepted at ATMs in the reformist country by January, “a milestone” for the tourism industry in particular.

The licensing agreement made by the credit card giant was signed on November 3, just one day after the long-awaited foreign investment law was signed by Myanmar President Thein Sein after 10 months of parliamentary shuffling.

The new law is being accepted by the international investment community has highly favourable, approving 10 of the eleven proposed amendments by the reformist president and signaling a transition away from the couched sentiments of the country’s military elite and entrenched tycoons.

Among the most contested amendments, 100 per cent foreign ownership of businesses in Myanmar without joint ventures with local partners are likely in many sectors except those deemed sensitive, such as “fisheries” and “agriculture.” However, final discretion will be left to the Myanmar Investment Commission to determine ownership in these so-called “restricted” sectors.

The minimum $5 million investment clause, deemed as too protectionist, has been removed.

The new law also clarified that foreign investors can now lease land form the government or authorised private owners for up to 50 years, depending on the type and size of the investment, a term previously not stated.

The law now shows considerable support of export-led industries. Foreign manufacturing companies, for example, may be extended up to 50 per cent tax exemption on profits from exports, and even full exemption if those profits are reinvented in the company within one year.

Investors further gained confidence in the country this week when the World Bank resumed its interaction with the former rogue nation after 25 years, issuing an urgently needed loan for $245 million in the first phase, which will greatly help improve underdeveloped and dilapidated facilities.

However, strife in religious-tension rocked Rakhine State threatens to curtail all the developments made thus far, stripping the audacious government’s plans to create legitimacy.

Reading Time: 2minutesMyanmar ATMs will release cash on Visa cards by January

The world’s largest credit card company, Visa Inc, has signed agreements with three private banks in Myanmar – Kanbawza, CB and Myanmar Oriental – to enable Visa-branded cards to be accepted at ATMs in the reformist country by January, “a milestone” for the tourism industry in particular.

The licensing agreement made by the credit card giant was signed on November 3, just one day after the long-awaited foreign investment law was signed by Myanmar President Thein Sein after 10 months of parliamentary shuffling.

The new law is being accepted by the international investment community has highly favourable, approving 10 of the eleven proposed amendments by the reformist president and signaling a transition away from the couched sentiments of the country’s military elite and entrenched tycoons.

Among the most contested amendments, 100 per cent foreign ownership of businesses in Myanmar without joint ventures with local partners are likely in many sectors except those deemed sensitive, such as “fisheries” and “agriculture.” However, final discretion will be left to the Myanmar Investment Commission to determine ownership in these so-called “restricted” sectors.

The minimum $5 million investment clause, deemed as too protectionist, has been removed.

The new law also clarified that foreign investors can now lease land form the government or authorised private owners for up to 50 years, depending on the type and size of the investment, a term previously not stated.

The law now shows considerable support of export-led industries. Foreign manufacturing companies, for example, may be extended up to 50 per cent tax exemption on profits from exports, and even full exemption if those profits are reinvented in the company within one year.

Investors further gained confidence in the country this week when the World Bank resumed its interaction with the former rogue nation after 25 years, issuing an urgently needed loan for $245 million in the first phase, which will greatly help improve underdeveloped and dilapidated facilities.

However, strife in religious-tension rocked Rakhine State threatens to curtail all the developments made thus far, stripping the audacious government’s plans to create legitimacy.